Mazquarie on Urban Outfitters; PT Increase

In a research note released Wednesday, Macquarie Research analyst Liz Dunn upgraded Urban Outfitters

to Outperform from neutral. In addition the company has taken its price target to $43.0 and has increased his 5-year growth estimate to 17 percent. The analyst said that she believes the company's brands have continued to grow and see strong sales momentum and improved margins. As the back to school season starts up again she believes the company will continue to do well. In addition, the analyst increased her full-year 2014 earnings per share estimates to $2.00 from $1.96. The price target was increased to $43.0 from $37.0. The company's stock is currently trading below its historical multiple range, which sets a good indication. Finally, the analyst said, “We believe URBN's long-term growth prospects are intact. The company has fewer stores than most retailers with differentiated products and concepts.” Shares of the retailer are up two percent on Wednesday and are down eight percent year-to-date.